Electric vehicle maker Tesla Inc. told state officials it has begun construction on expanding its 10 million-square-foot Texas Gigafactory, planning to add more than 5.2 million square feet of space to the plant by the end of 2026.
The Austin-based automaker unveiled its plans under such project names as Body in White, Stamping, Plastics, High Bay and Paint, in work permits filed with the Texas Department of Licensing and Regulation, noting that construction had begun on the projects in the past week. In the 11 state permits recently filed on the expansion at 1 Tesla Road in Austin, Texas, where it also has its headquarters, the company said completion was expected by the end of 2026.
Tesla did not respond to an emailed interview request from CoStar News. In the earnings call, Elon Musk, co-founder and CEO of Tesla, did not discuss the expansion of its plant, but he did talk about the company increasing its business after reporting third quarter earnings that beat analyst expectations.
"We do expect to roll out ride-hailing in California, Texas next year to the public... and maybe some other states actually, next year as well, but at least California and Texas," Musk told investors during the earnings call. "Tesla becomes more than a sort of vehicle and battery manufacturing company, at that point."
Even as Tesla's business grows, so does its competition. Chinese electric vehicle maker BYD's quarterly sales overtook Tesla's sales for the period for the first time, according to a CNBC report. About half of BYD's vehicle sales during the quarter were tied to hybrid vehicles, the report said, compared with Tesla's sales that relied completely on electric vehicles.
Tesla's net profit still surpassed rival BYD, the media outlet said, with the Texas-based EV maker seeing a quarterly net profit of $2.18 billion, up 16.8% from the same quarter last year. BYD's net profit was up 11.5% to $11.6 billion yuan.
In October, Tesla was reportedly given a green light by German authorities to expand its plant near Berlin, doubling its capacity. The expansion is expected to take place on land already owned by the automaker.